View of a large open-cast phosphate mine in Togo.
Developing countries such as Togo have an abundance of natural resources. The SDC is committed to ensuring that these are exploited fairly © Alexandra Pugachevsky

Exploiting natural resources is crucial to the economies of many developing countries and Swiss companies play a key role in commodities trading. Natural resources can be used to alleviate traditional forms of poverty, but many countries fail to take this step. The SDC aims to address this problem. 

The commodities sector is becoming increasingly important in developing countries. According to a 2016 report by the United Nations Conference on Trade and Development (UNCTAD), 91 developing countries in 2015 were dependent on commodities, where commodity exports accounted for more than 60% of a country's total merchandise exports. The World Bank also estimates that Africa alone is home to about 30% of the world's mineral reserves. Certain minerals, such as cobalt and tantalum, which are used extensively in electronic products, mainly come from fragile countries. 

With the expansion of 'clean' industries and technologies, the demand for minerals is set to increase, generating significant investment in exploration and developing new mines.

The various backgrounds and roles of the stakeholders involved have been debated for years by the academic community, international development policy committees, governments and civil society. The macroeconomic effects of exploiting natural resources and the factors causing price volatility have also been assessed. Attention has also been focused on extraction practices that cause damage to health and the environment, exploitative working conditions and conflicts over access to natural resources, which have the potential to unleash violence or even armed conflict.

Issues relating to financial flows from commodities trading are also the subject of intense debate. In general, funds that have been acquired illegally, or in questionable circumstances, and are transferred abroad present a major obstacle to economic growth and good governance in developing countries. There is broad consensus that illicit outflows from developing countries exceed the value of official development assistance many times over. A high percentage of these financial flows are attributable to commodities production and trading.

Switzerland is a key player in the commodities trading sector. It is estimated that more than 3 billion tonnes of commodities, calculated at over CHF 960 billion, are traded in Switzerland each year. In a report entitled 'The Swiss commodities sector: current situation and outlook' published in November 2018, the Federal Council states that it expects all companies operating in or out of Switzerland to demonstrate integrity and responsible conduct with regard to respect for human rights as well as environmental and social standards, both within Switzerland and abroad. The Federal Council also states that this applies to the entire value chain and is especially important for companies that operate in fragile states. 

 The SDC's main areas of activity

  • The SDC is committed to raising international standards for commodities production and trading and ensuring that governments and companies properly implement such standards.
  • Switzerland supports the implementation of multilateral instruments in the fight to control corruption and illicit financial flows.
  • In terms of international development cooperation, the SDC is committed to assisting its commodity producing partner countries in managing natural resources and creating sustainable value chains.
  • By supporting research and multi-stakeholder platforms, Switzerland is contributing to a better understanding of both the challenges and opportunities facing developing countries in relation to mining.

Current projects

Object 49 – 60 of 218

Engaged People - Strong municipalities

01.11.2019 - 31.12.2030

Molodova has the most fragmented sytem of local governments in the South-East Europe. People's dissatisfaction with quality of services is high and participatory decision-making is not common. Local governance reforms launched by the Government are being pursued in a centralized manner. Switzerland will support moldova through a two-pronged approach supporting citizens (in enhancing participation and social accountability) and institutions (in improving public service provision), particularly in rural areas.  


Strengthening Governance and Human Rights in Central America

Natural Resources Governance Dialogue

01.10.2019 - 30.09.2022

The program strengthens the capacities and the presence of the Inter-American Human Rights System in Central America in order to ensure the follow-up on court judgements and recommendations, to educate employees of the justice sector, to report on the Human Rights situation and to strengthen the protection of Human Rights defenders. The program further promotes dialogue on natural resource management among governments, the private sector, indigenous peoples, and Afro-descendants.


Democratic Society Promotion (DSP)

01.10.2019 - 31.12.2023

Through grants and capacity building, Kosovo's civil society is supported to do advocacy and fulfil its watchdog function, to become more accountable and transparent and to enhance legitimacy by reconnecting with citizens and their constituency. By providing support through a contribution to the newly established donor pool fund administered by the local partner Kosovar Civil Society Foundation (KCSF), support to civil society will become more efficient, sustainable and better coordinated.


Horn of Africa: Framework for Risk Governance and Adaptive Programming (FRAP)

15.09.2019 - 31.12.2024

The Horn of Africa is a hyper-fragile context with high security and fiduciary risks. This framework strengthens Switzerland’s fitness to operate remotely in hard-to-access contexts through a innovative monitoring and accountability tool. It supports capacity strengthening of local partners. The framework enables adaptive programming and effectiveness of the portfolio. It strengthens Somalia’s statistical system to improve data gathering and to monitor the implementation of the Agenda 2030.


Somalia: Strengthening State Institutions for better service delivery

01.09.2019 - 31.12.2022

Building state institutions and the capabilities of the Somali government to implement better services is of primary importance to realize the developmental objectives contained in the Somalia National Development Plan (NDP) and the Sustainable Development Goals. With the contribution to the World Bank Multi-Partner Fund (MPF) Switzerland will support the rebuilding of core state functions and the socio-economic recovery in Somalia.


Unterstützung des Weltentwicklungsprogramms (UNDP) zur Förderung der Krisenprävention und -bewältigung (2019 – 2021)

01.09.2019 - 31.12.2021

Laut einer Studie von UNO und Weltbank spart jeder Franken, der in Konfliktprävention investiert wird, mindestens 16 Franken an humanitärer Hilfe, Blauhelmsoldaten und wirtschaftlichen Kosten. Die Prävention und Bewältigung von Krisen mit den Mitteln der Entwicklungszusammenarbeit ist im Interesse der Schweiz. Die Unterstützung von vier Initiativen des Weltentwicklungsprogramms (UNDP) fördert gezielt Frieden und Sicherheit, Rechtstaatlichkeit und demokratische Institutionen. Die Schweiz beeinflusst dadurch auch die Gesamtausrichtung von UNDP.


Support to Aid Management and Coordination in Somalia

01.09.2019 - 30.06.2021

The project will support capacity development of the Federal Government of Somalia (FGS) in the fields of Aid Coordination and Aid Effectiveness. This will contribute to the international community’s commitment to support the implementation of the New Partnership for Somalia (NPS) and National Development Plan (NDP) through strengthening national capacities for effective aid management and coordination.


Switzerland Co-Chair GPEDC

01.09.2019 - 31.12.2021

In 2019, Switzerland was elected Co-Chair of the Global Partnership for Effective Development Cooperation (GPEDC). The GPEDC has an important role in supporting the implementation of the Agenda 2030 at the country level by supporting effective partnerships. Through the GPEDC, Switzerland will advance the Agenda 2030 incl. «leave no one behind», deepen dialogue and engagement with Southern providers, incl. China, contribute to «data for development» and SDG data and support the review of the Global Monitoring Framework for the commitments to development effectiveness.


ELECT – Elections libres et crédibles en Tunisie

15.08.2019 - 30.06.2021

The project supports the orderly conduct of the 2019 Electoral process in Tunisia (legislative and presidential elections). It aims at ensuring International and African observation missions and enabling local NGOs to co-lead the process. This short term project completes and facilitates Switzerland’s support to democratic processes in the field of accountability and citizen participation since 2011.


Local Governance Initiative and Network Asia (LOGIN)

01.08.2019 - 31.07.2023

The Local Governance Initiative and Network (LOGIN) is a unique, member-driven south-south learning community and change coalition of local and national governments and enabling organizations. The network is committed to advance democracy, decentralization and local governance reform in Asia. Initially conceived as a SDC project, LOGIN functions as independent association starting from 2019. LOGIN ultimately promotes peace and stability in Asia, which are key interests of Switzerland in the region.


Accelerating financing for development: international taxation and investment

01.08.2019 - 31.12.2023

The realization of the 2030 Agenda requires an unprecedented mobilization of public and private funds. Through targeted engagements with well-known think tanks, this intervention will support the creation of evidence on the combined potential of international investment and taxation policies as accelerators for the financing of sustainable development. Translated into policy options, this evidence is expected to contribute to the shaping of policy discussions in relevant international fora, notably at the OECD, and inform Swiss positions.


Programme d’Appui à la Production Agricole en Haïti (PAPAH), Phase II

01.08.2019 - 31.12.2024

La phase 2 du Programme d’Appui à la Production Agricole en Haïti vise à renforcer le système national de financement et d’assurance agricoles en Haïti, porté par les institutions publiques et privées et régulé par la Banque de la République d’Haïti. La contribution suisse servira de levier pour mieux structurer et orienter des investissements d’environ USD 340 millions au profit des exploitations dans les chaines de valeur agricoles; dans le Sud et la Grand-Anse, en synergie avec les programmes du portefeuille Suisse, le développement de produits financiers spécifiques servira environ 20 000 exploitations agricoles.

Object 49 – 60 of 218